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Bharat Book Presents"Research Report on China Tire Industry, 2013-2017". In 2012, the output volume of rubber tires reached 891.67 million in China, increasing by 7.16% YOY. Among that, the output volume of radial tires totaled 460.5 million, increasing by 17.1% YOY
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Research Report on China Tire Industry, 2013-2017 One-Stop Shop for Business Information
Summary In 2012, the output volume of rubber tires reached 891.67 million in China, increasing by 7.16% YOY. Among that, the output volume of radial tires totaled 460.5 million, increasing by 17.1% YOY. In terms of regions, China tire production mainly concentrated in east coast regions in 2012. In 2012, the sales revenue of tire manufacturers exceeded CNY 400 billion in China. In 2012, the price of tire materials fluctuated and decreased sharply. Among that, the annual average price of natural rubber (SCR10) decreased from 33,835 CNY/ton to 25,053 CNY/ton, decreasing by 25.9% YOY; that of styrene butadiene rubber (1500) decreased from 26,808 CNY/ton to 20,519 CNY/ton, decreasing by 23.5% YOY; that of butadiene rubber (grade 1) decreased from 30,225 CNY/ton to 22,833 CNY/ton, decreasing by 24.5% YOY.
The causes are as the following: 1. natural rubber supply was sufficient, but its price kept decreasing due to the influence of global slump economy; 2.prices of coal and crude oil kept low, so the price of synthetic rubber also decreased after lost cost support. In 2012, tire price decreased due to the weak demand and decreasing price of raw materials The annual average prices of radial tires (165/70R14) for sedan and bias-ply tires (7.50-16-14PR) for light truck were 265 CNY/set and 701 CNY/set respectively, decreasing by 5.7% YOY and 12.5% YOY respectively. However, the gross margin of tire industry increased obviously because of its enlarged profit space. In 2012, the total profit of tire industry reached CNY 27.5 billion, increasing by 43.7% YOY, which was 40% higher than the growth rate of output volume.
Many international tire giants have begun to successively enter China since the 1990s. Attracted by the low production costs in China, many multinational tire enterprises treat China as an important tire production base. China's advantages in huge market demand and low costs are extremely attractive for global tire investment. At present, over half of China tire market has been occupied by foreign-funded enterprises. Moreover, foreign-funded enterprises firmly occupy the domestic high-end market, so their profit margins are usually twice that of China local enterprises or even more.
In China, international tire giants occupied rather huge advantages while most domestic tire enterprises are small and weak. According to the rough statistics of China research and Intelligence, the number of tire enterprises has exceeded 500 in China by the end of 2012. CRI predicts that many small and medium-sized tire enterprises will disappear (may go bankrupt or be acquired by huge tire enterprises) in the coming three to five years along with the accelerating mergers and reorganization of China tire industry.
Table of Contents • Basic Concept of Tire Industry • Development Environment of China Tire Industry, 2012-2013 • Analysis on Supply of China Tire Industry, 2008-2012 • Analysis on Demand of China Tire Industry, 2008-2012 • Analysis and Forecast on Import & Export of China Tire Industry, 2010-2017 • Operation Statuses of Major Multinational Enterprises in China Tire Market, 2011-2013
Related Reports • Tire Market in China 2012-2016 • Tire Market in India 2012-2016 • Trends in the Global Tire Industry • Global Tire Market Assessment & Future Opportunities 2008-2018 • China Tire Retreading Industry - Overview and Forecast to 2017
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